Skip to content Skip to Search
Skip navigation

PIF-backed Oman infrastructure fund raises $1 billion

By Matt Smith
terminal, boats, sea, cranes Unsplash/Olga Subach
Rakiza has spent some of the fund on 31 percent of a Port Sohar container terminal in Oman
  • Fund focus includes renewables, water, telecoms and logistics
  • Rakiza close to making first investment in Saudi Arabia

Omani infrastructure investor Rakiza, which is backed by Saudi Arabia’s PIF, has closed its first fund, raising more than $1 billion from participants. 

Rakiza has already spent a quarter of this money in buying three Omani assets – a 30 percent stake in a telecom tower portfolio, 31 percent of a Port Sohar container terminal and a majority holding in a new fruit and vegetable market – it said in a statement on Tuesday. 

The fund targets investments in renewables, water, telecoms, transport and logistics, and social infrastructure in Oman and Saudi Arabia. 

“The pipeline of near-term opportunities is strong and there are several further investments which are nearing financial close, including in what would be Rakiza’s first acquisition in Saudi Arabia,” the statement said. 

Oman has embarked on a multi-billion-dollar programme to upgrade its infrastructure.

This month a minister said the sultanate would spend $2.6 billion in constructing 1,300km of new roads, while a state-run energy firm signed six deals worth $20 billion to build green hydrogen projects across the country. 

In August, Saudi’s Public Investment Fund (PIF) invested $300 million in Rakiza, which is co-managed by Oman Infrastructure Investment Management and London-based Equitix.

“The GCC is an attractive home for smart capital, and an exciting investment destination for those with local access,” Equitix’s co-founder and chief executive Hugh Crossley said in Tuesday’s statement. 

“Driven by Rakiza’s local investment teams in Muscat and Riyadh offices, we aim to deliver on the fund’s return objectives, by investing in and developing compelling essential infrastructure projects.”

Last October, Saudi’s Crown Prince Mohammed Bin Salman, said PIF would launch five companies to invest in Bahrain, Iraq, Jordan, Oman and Sudan.

Together with PIF’s Egyptian subsidiary, these six companies will invest up to $24 billion in total.

Latest articles

STC wants to consolidate the mobile tower market

STC approves PIF purchase of telecom company

Shareholders of Saudi telecom giant STC have approved plans to create a new telecommunications infrastructure company in which the Public Investment Fund will have a 51 percent stake valued at SAR8.7 billion ($2.3 billion).  Under the deal, the STC-owned Telecommunication Towers Co. Limited (Tawal) will become a PIF subsidiary through a merger with Golden Lattice […]

Flavio Cattaneo of Enel, of which Endesa is a subsidiary, and Mohamed Jameel Al Ramahi at the signing of the deal

Masdar buys stake in Spanish utilities company Endesa

The UAE’s state-owned clean energy company Masdar has agreed to acquire a minority stake in Spanish electric utility business Endesa to partner for 2.5 gigawatts (GW) of renewable energy assets in Spain. Under the agreement, subject to regulatory approval, Masdar will invest nearly $890 million to acquire a 49.99 percent stake in Endesa, with an […]

UAE markets Hong Kong

UAE capital markets partner with Hong Kong exchange

The Hong Kong Stock Exchange (HKSE) has added the Abu Dhabi Securities Exchange (ADX) and the Dubai Financial Market (DFM) to its roster of recognised marketplaces. The move opens the door for UAE-based companies to pursue secondary listings on one of Asia’s premier financial markets. It also follows the inclusion of the Saudi Exchange (Tadawul) […]

Person, Worker, Adult

Aramco and PIF invest in Saudi-Chinese steel venture

Saudi Aramco and the Public Investment Fund have doubled their investment in a steel plate joint venture with a Chinese company to $500 million. The two Saudi companies each own 25 percent shares in the new venture in Ras Al Khair industrial city, Bloomberg reported, quoting a statement published on the Chinese stock exchange. Chinese […]